Responses for Full Liberalization of the Retail Sale of Electricity
A year has passed since the full liberalization of the retail sale of electricity started in April 2016. Although the competition is intense, our new menu of electricity rates and services are receiving solid approval from many customers. We will provide high value-added services so as to go on being chosen by the customers of the Chugoku Region, which is our operating base.
Status of Shimane Nuclear Power Station
◆ Outline of Shimane Nuclear Power StationWe shut down Unit 1 at Shimane Nuclear Power Station and are taking various safety measures for its Units 2 and 3
in the light of new knowledge and insight gained from the accident at the Fukushima Daiichi Nuclear Power Station. Unit 1 was shut down on April 30,2015. We obtain approval of a decommissioning plan in April 2017. We are
proceeding responsibly with the utmost priority on ensuring safety. Regarding Unit 2, we applied in December 2013 for examination to verify its compliance with the new regulatory
requirements, and examination of its earthquake/tsunami-related and equipment-related aspects is currently in progress. At the same time, we are taking required safety measures.
Regarding Unit 3, we are proceeding with taking required safety measures, and with preparing for applying for compliance verification.
Efforts to Achieve the Corporate Vision
Source: Electricity and Gas Market Surveillance Commission Provisionally calculated in-house from the Electricity Transactions Report
3.8%
1.5%
6.9%
2.5%
0.8%
5.4%
0.6% 1.2%
2.3%
Hokkaido Tohoku Tokyo Chubu Hokuriku Kansai Chugoku Shikoku Kyushu
◆ Share of New Electricity (Low voltage, as of March 2017)
Unit 2 Unit 1 Unit 3
Switching from our company is lowest.
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◆ Outline of the New Regulatory Requirements
◆ Main Safety Measures at Shimane Nuclear Power Station
Learning from the accident at the Tokyo Electric Power Company’s Fukushima Daiichi Nuclear Power Station, "Defense-in-depth*1" which is the fundamental ideology for nuclear power safety has been strengthened. The Nuclear Regulation Authority enacted new regulatory requirements for nuclear power station in July 2013.
The new regulatory requirements have stricter assumptions for earthquakes and tsunami, and newly require measures for volcanoes, tornados and interior overflowing*2.
Countermeasures for a severe accidents*3
are now regulated, whereas previously they had been voluntary safety measures.
*1 Defense-in-depth: To adopt multilayered safety measures, however, when designing each safety measure, ensure that the purpose can be achieved with the relevant measure without relying on other measures.
*2 Interior overflowing: Water that flows into the building because of water leaks from damage of devices and piping in the power station buildings or activation of fire extinguishing equipment.
*3 Severe accident: Phenomenon in which nuclear reactor is subject to serious damage.
*4 Design basis: Standards for preventing severe accidents
At the Shimane Nuclear Power Station, including Unit 3 under construction, we are considering the multiplicity and diversity of measures to ensure safety with the strong determination that we will never have a similar accident. Our safety measures center on "measures to prevent severe accidents" and "measures in the event that a severe accident occurs".
Currently, we are also carrying out construction to improve the safety of the power station.
Conceptual Graphic of Shimane Nuclear Power Station Safety Countermeasures
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Formation of Environmentally-friendly Equipment
◆ Thermal Power GenerationNational Technical Roadmap for Next-generation Thermal Power Stations
The nation is promoting higher efficiency for thermal power stations.
Misumi Power Station Unit 2 (Coal) By adopting the most advanced power generation method (USC*1) corresponding to the best available
technology (BAT*2), and by applying knowledge gained from operating Misumi Unit 1, we have developed plans for power generation facilities having superior environmental qualities, operation reliability, and economy.
Name Misumi Power Station Unit 2
Address 1810 Okami, Misumi-cho, Hamada City,
Shimane Prefecture
Output 1,000 MW
Electricity generating system Ultra Super Critical
Fuels used Coal
Schedule Work stating: November 2018
Operation starting: November 2022
We take coping with an issue of global warming as an important task. Along with efforts to expand the usage of non-fossil fuel energy such as nuclear power and renewable energy, we also strive to more efficiently use our fossil fuel energy, such as by using the best technology economically usable in our newly-developed thermal power station.
◆ Nuclear Power GenerationThe operation of nuclear power station is highly effective
to saving valuable fossil fuel and emission reductions of CO2.
*1 Ultra Super Critical
*2 Best Available Technology
Source: Ministry of Economy, Trade and Industry (“METI”)
FY2017 Simane Unit2 & Unit3
KaminosekiUnit1
KaminosekiUnit2
Restart of Shimane Unit 2 andnew nuclear power development
39.5730%
-14.00 50%-19.00
(million t)
20%-9.00
Control effect of CO2 by the operation of nuclear power station (Image is for illustration purpose)
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The Integrated Gasification Fuel Cell (IGFC) Coal-fired thermal power provides superior supply stability and economy, and Chugoku Electric is engaged in
developing technology that will contribute to high efficiency and cleanness levels for this energy form, so that it can be utilized long into the future.
Aiming for the Integrated Gasification Fuel Cell (IGFC)*1, the ultimate high-efficiency coal-fired thermal power generation technology, which drastically reduces CO2, we started demonstration tests with an Oxygen-blown Integrated Gasification Combined Cycle (Oxygen-blown IGCC)*2, which is the fundamental technology for IGFC, in March 2017.
◆ Efforts to Expand Introduction of Renewable EnergyWe are working as a united group to expand introduction of renewable energy.
Mega Solar Power We are operating mega solar power station in Fukuyama City, Hiroshima Prefecture and Ube City, Yamaguchi
Prefecture.
Biomass Power Generation
Testing location Inside Osaki Power Station site
Output 166 MW
Testing scheduled to commence March 2017
Name Fukuyama Photovoltaic Power Station Ube Photovoltaic Power Station
Address Minooki-cho, Fukuyama City, Hiroshima Prefecture (Company premises)
Nishiokinoyama, Ube City, Yamaguchi Prefecture (Company premises)
Output 3 MW 3 MW
Power generation
Approx. 3,680,000 kWh / year Equivalent to the annual usage for approx.1,000 general households
Approx. 3,520,000 kWh / year Equivalent to the annual usage for approx.900 general households
Reduction of CO2 emission approx.2,100 t -CO2 / year approx.2,000 t-CO2 / year
Start of operation December 2011 December 2014
Name AIR WATER & ENERGIA POWER YAMAGUCHI CORPORATION
Address 3-1, Kanebo-cho, Hohu City, Yamaguchi Prefecture (Inside Hofu plant)
Output 100 MW
Electricity generating system Circulating Fluidized Bed
Fuels used Woody biomass (including domestic materials primarily procured from Yamaguchi Prefecture), Coal
Schedule Work stating: June 2017 Operation starting: June 2019
Investment ratio AIR WATER 51%, Chugoku Electric 49%
*1 A form of cycle power generation technology that combines fuel cells with IGCC to further improve generating efficiency.
*2 Technology whereby oxygen is used to gasify coal, yielding a product gas with H2 and CO as main constituents, which is used to drive gas turbines alongside steam turbines in combined cycle generation.
We are proceeding with construction on a biomass and coal mixed-fuel power station.
Along with contributing to the expansion and spread of renewable energy through biomass power generation, we believe it will contribute to expanding profitability in the business environment following the liberalization of the retail sale of electricity and the electricity system reform.
Ube Photovoltaic Power Station
View of the Demonstration Test Plant
Construction Location Hohu City
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Purchasing Power from Renewable Energy In order to contribute to an expansion of renewable energy, we purchase electricity generated by solar power and
wind power. Latest application status can be found at: http://www.energia.co.jp/elec/seido/kaitori/moshikomi.html
Demonstration Project Utilizing Hybrid Storage Battery System in the Oki-islandsTo further penetration of renewable energy, we constructed a hybrid power storage system that combines two types
of storage batteries, and started operation in September, 2015 in the Oki islands, as the first challenge in Japan. From the end of September 2015 to March 2019, we verify the technology to manage and control efficient charging
and discharging of the storage batteries.
CO2 Emissions and Emission Factors
Application for
contract
completed
Connection
completed Total
Solar power 283 330 613 Wind power 84 35 119
Hydroelectric 3 3 6 Biomass 54 13 67
Geothermal 0 0 0 Total 424 381 805
(3,945)(4,329) (4,239)
(4,084) (3,951) (3,957)2,633 3,044
3,749 3,976
3,014
3,938 4,228
4,104 3,968 3,976
(0.657)(0.738) (0.719) (0.706)
(0.697) (0.691)0.614 0.616
0.688 0.668 0.5020.672 0.717 0.709
0.700 0.694
42.949.4
54.559.5 60.1 58.6 59.0 57.9 56.7 57.3
9.7
9.26.8
9.35.9
0 0 0 0 0
1991 1996 2001 2006 2012 2013 2014 2015 2016 2017
Electric Sales [billion kWh]
Power Generated by Nuclear Power [billion kWh]
CO2 Emission Factor[kg-CO2 / kWh]
CO2 Emission [ten thousand t -CO2]
Credits etc. reflection
Installation of Renewable Energy Facilities (As of March 31, 2017)
*On remote islands where transmission lines are not linked to the mainland, electricity usage is small, and fluctuations in the amount of renewable energy generated have a large impact; therefore, in order to expand the introduction of renewable energy, we installed two types of storage batteries and began verification project.
(10MW)
805
2012/7~The launch of the feed-in tariff scheme for renewable energy
(10MW)
Calculated from the "Calculation and announcement of actual emissions coefficients and adjusted emissions coefficients by electricity utility" announced by the nation based on the Act on Promotion of Global Warming Countermeasures (hereinafter, "Global Warming Act").
Reflects adjustments involved in FIT (from FY2013) and CO2 emissions credits (to FY2016) based on the Global Warming Act. The parentheses indicate values before reflection (emissions and emission factors before adjustment).
From FY 2014 and thereafter, as the FIT adjustment amount exceeds the CO2emissions credit reflection amount, the unadjusted value is larger than the adjusted value.
The CO2 emission factor for FY 2017 is a provisional value, and the official value will be announced by the nation. After FY2017, CO2emission factor doesn’t include supply amount for remote islands. Electric sales and CO2 emission include them.
(FY
17
Establish a Revenue Base in Other Regions and Overseas
We will cooperate with influential partners in Japan and overseas to establish a revenue base both in other regions of Japan and overseas, thus improving the base profitability of the group.
◆ Expansion of Electricity Sales Business in Other Regions in JapanWe have begun selling electricity to home customers in the Greater Tokyo area since April 2016.
After electricity retailing in the Greater Tokyo area gets rolling, we will investigate expanding the business depending on its profitability and other factors.
New Power Source Development In Other Regions In Japan In cooperation with JFE Steel Corporation, we are proceeding with investigations to develop a coal-fired power
station in Chiba City, Chiba Prefecture, and established Chiba Power Co., ltd in April 2017. We believe that, by using our company's know-how and JFE Steel Corporation's existing infrastructure, the
development of power stations with outstanding supply stability and cost performance will further contribute to improving profitability in the business environment following the electricity system reform.
Name Chiba Power Co., ltd
Address
Kawasaki-cho, Chuo-ku, Chiba City, Chiba Prefecture JFE Steel Corporation, East Japan Works (Chiba District) premises
Output 1,000 MW
Electricity generating system Ultra Super Critical
Fuels mainly used Coal
Schedule Work stating: 2020 Operation starting: 2024
Investment ratio Chugoku Electric 73%, JFE Steel 27%
Construction Location Chiba City
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Investment in Power Generating Business Overseas We are assigning overseas generating projects to the growth-oriented projects aimed at the future growth and
development of the Chugoku Electric Group, and invested in a coal-fired power generation project in Malaysia on March 2016. We have also dispatched employees from our company on-site since June of the same year.
We maximize the usage of the accomplishments, experience and environmental technology the company has accumulated through the construction management and operation of coal-fired power plants in order to provide a stable supply of electricity in Malaysia and contribute to the realization of a low-carbon society.
We will continue implementing measures to strengthen our earning capacity by seeking out and actualizing other new foreign investment projects.
Establishment of Overseas Base
Development of Overseas Consulting Business Utilizing our knowledge of the electricity business cultivated up to now both in Japan and overseas, we plan to
contribute to the electricity business overseas and develop our overseas consulting business, positioning it as a pioneering effort related to the overseas electricity generation business.
For example, for over ten years in Cambodia, we have fostered a trusting relationship by taking on consulting work, including consulting involving the revision of electric power master plans and development of small hydroelectric plants.
Installed Capacity
Ultra super critical (USC) coal-fired power generation 2,000MW (1,000MW ・ 2 units)
Start of operations Unit No. 1: June 2019 Unit No. 2: December 2019
Offtaker and
period TNB (Malaysian electric power company) for 25 years
Total project cost Approx. 12 billion MYR (Approx. 320 billion JPY)
We are looking at the entire globe for areas to expand our overseas business. Given that half of the global electric power demand is predicted to lie in Asia in the future, we established our first representative office in Singapore in July 2016 as an overseas base. The function of the representative office is to conduct research in electric power generation markets, mainly in Asia.
Singapore
Consulting for Development of Small-scale Hydropower plants (Cambodia)
Consulting for Revision of Electric Power Development Master Plan (Cambodia)
Opening Ceremony
Investment Scheme Plant LocationProject Overview
Office Location (International Plaza)
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